The ₹500-crore initial public offering (IPO) of Excelsoft Technologies commenced today, with a price band set between ₹114 and ₹120 per share. The IPO will remain open until November 21, and investors must purchase a minimum of 125 shares as a market lot.
Excelsoft Technologies has allocated up to 50 per cent of the issue to qualified institutional buyers (QIBs), 35 per cent to retail investors, and 15 per cent to non-institutional investors (NIIs).
The IPO consists of a fresh issue of 1.5 crore equity shares valued at ₹180 crore, alongside an offer for sale (OFS) of 2.67 crore shares totaling ₹320 crore. Under this offer for sale, promoter Pedanta Technologies will divest a portion of its stake.
The company intends to use the proceeds from the fresh issue for various purposes, including land acquisition and construction, upgrading electrical and IT systems, investing in product development, and for general corporate needs.
Anchor Investors
On Tuesday, Excelsoft Technologies secured ₹150 crore from anchor investors prior to its IPO by allotting 1.25 crore shares at ₹120 each. Notable investors include Bengal Finance & Investment, 360 One Equity Opportunity Fund, GKFF Ventures, Societe Generale, Rajasthan Global Securities, BNP Paribas Financial Markets, and Bandhan Mutual Fund, as detailed in a circular on the Bombay Stock Exchange (BSE) website.
About Excelsoft
Founded in 2000 and based in Mysuru, Karnataka, Excelsoft is a vertical Software-as-a-Service (SaaS) company specializing in digital learning and assessment platforms tailored for educational institutions, corporations, and certification agencies.
The company serves a diverse international clientele across 19 countries, including the US, UK, UAE, Singapore, and Australia, with clients such as Pearson Education Group, which accounts for approximately 59 per cent of Excelsoft’s total revenue.
Broker Assessments
SBI Securities provided a valuation perspective, noting that at the upper price band of ₹120, the IPO corresponds to a FY25 Price-to-Earnings (P/E) ratio of 39.8x based on post-issue capital. The company exhibits a strong net profit compounded annual growth rate (CAGR) of 24.4 per cent for the FY23-FY25 period, with an EBIT margin surpassing 27 per cent in FY25. However, revenue growth has been modest, remaining below 10 per cent during the same timeframe. Comparing these metrics to a close competitor suggests the issue is fairly valued. As of June 2025, Excelsoft’s cash and bank balances stood at ₹248 crore, with a return on invested capital (excluding cash) at 19.5 per cent for FY25. SBI Securities maintains a neutral outlook on the IPO, intending to observe the company’s performance post-listing.
Reliance Securities highlighted Excelsoft’s robust vertical SaaS and EdTech positioning, noting its strong financial history, increasing profitability, global client reach, and specialized focus on learning and assessment—factors that differentiate the company. The planned use of IPO proceeds to enhance infrastructure and invest in artificial intelligence (AI) and large language models (LLMs) suggests significant future growth potential. However, successful execution in scaling operations, delivering AI-based innovations, and effectively managing capital expenditures will be critical for value creation. Reliance recommends investors subscribe to the IPO, citing promising developments.
Published on November 19, 2025
